State Debt Woes Grow Too Big to Camouflage

[groovedaddy]

California, New York and other states are showing many of the same signs of debt overload that recently took Greece to the brink — budgets that will not balance, accounting that masks debt, the use of derivatives to plug holes, and armies of retired public workers who are counting on benefits that are proving harder and harder to pay.

And states are responding in sometimes desperate ways, raising concerns that they, too, could face a debt crisis.

New Hampshire was recently ordered by its State Supreme Court to put back $110 million that it took from a medical malpractice insurance pool to balance its budget. Colorado tried, so far unsuccessfully, to grab a $500 million surplus from Pinnacol Assurance, a state workers’ compensation insurer that was privatized in 2002. It wanted the money for its university system and seems likely to get a lesser amount, perhaps $200 million.

Connecticut has tried to issue its own accounting rules. Hawaii has inaugurated a four-day school week. California accelerated its corporate income tax this year, making companies pay 70 percent of their 2010 taxes by June 15. And many states have balanced their budgets with federal health care dollars that Congress has not yet appropriated.

http://www.nytimes.com/2010/03/30/business/economy/30states.html?th&emc=th

[xchrom]

1. And that rhymes with T and that stands for Trouble - right here in River City. Nt

[Bitwit1234]

2. I bet that most of those states are running up more of a bill by suing

to overturn the health care bill. gee I just posted it in another message, that's why republicans are getting fewer and fewer. The Billy Goat is taking over.

[dixiegrrrrl]

3. I never thought I would see the positive side of privatization.

But.....

if you privatize a former state function, then the state can't steal the money for some other purpose.

[ixion]

4. true... but the money still gets stolen

it's just by the company, rather than the gov. Taxpayers pay the bill, as always. :(

[upi402]

5. Funds are fungible?

I usually understand where you're at but need a little help here dixiegrrrrl.

Do you mean the state is locked-in contractually with a private firm and can't just delete a state program and fund "educational" junkets and motorpool upgrades - like that?
Some New Democrats do that crap here where I live, not just Republicans.
Gut school art, fire janitors, make kids share textbooks - then rent out a seaside resort for a junket when square miles of free space is available.